For some time there were reports that the central government may make changes in the contribution of the National Pension System Scheme (NPS).
However, the government is not contemplating any modification in the contribution of NPS. The clarification of the Ministry of Finance has come in response to the question asked in this regard. Also Read: Cheque Bounce Notice! You only get one month’s deferment, do this work to survive
What is the matter: Actually, this question was asked in Lok Sabha whether the government is considering revision of NPS contribution for employees posted in autonomous central bodies under various ministries. In response to this, the Finance Ministry said that no changes have been made in this nor is it being considered. Also Read: Ujjwala 2.0: Pradhan mantri ujjwala yojana form online apply 2021 | PMUY Second phase starts pm ujjwala yojana list 2021 know here
14 percent to central employees: Let us tell you that from January 1, 2004, the new pension system is applicable for all the newcomers in the service of the central government. Under this, the central government gives a contribution of 14 percent of the basic salary in the pension of its employees. However, till the year 2019, this contribution of the government was 10 percent, which was increased to 4 percent. It was announced by Arun Jaitley as Finance Minister. Also Read: EPFO: Depositing money in EPF every month can get more than Rs 1.5 crore, know how
For Autonomous Bodies: However, for employees of Central Autonomous Bodies, the monthly NPS contribution is still at 10 per cent of their basic salary. The employees’ union also approached the Delhi High Court seeking an increase in the contribution from the government. Also Read: Know how many people in India earn Rs 100 crore annually… and how many people are poor
The court also held that the employees of autonomous bodies cannot be given pension at par with government employees. However, the struggle is on to increase the pension contribution of the employees.
Let us tell you that employees of State Governments/Union Territories (UTs) and respective autonomous bodies of State Governments/UTs are also eligible to join NPS. These employees also get a pension of 10 percent of the basic salary.
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